California man pleads guilty to illegal offshore gambling, laundering and tax evasion
A Calabasas, California resident pleaded guilty to operating an illegal offshore gambling business, laundering more than $1.5 million, and evading taxes on over $4 million in income, a DOJ press release states.
A Calabasas, California, man has pleaded guilty in federal court to running an illegal offshore gambling business, laundering cash, and evading federal taxes on millions in earnings from his unlawful operation, the U.S. Department of Justice announced.
According to the DOJ, Jason Noah Feinman admitted that he operated an unlicensed gambling enterprise that provided infrastructure for illegal wagers and intentionally concealed his substantial income from tax authorities, conduct that violates both federal gambling and tax laws.
Scheme Overview and Illegal Operations
Federal court records show Feinman operated a Costa Rica-based website used by unlicensed and illegal gambling businesses to facilitate wagers for customers, including individuals in California.
Such operations, especially when targeting U.S. bettors, run afoul of both state and federal law because they evade regulatory controls and consumer protections.
From 2018 to 2022, Feinman knew that revenue generated from his illegal gambling enterprise was taxable, but he failed to report it on his federal tax returns.
Instead, he concealed approximately $4,198,136 in income from the Internal Revenue Service (IRS), according to court filings.
The DOJ press release explains that in 2020 alone, Feinman reported no taxable income, despite earning roughly $1.8 million that year, demonstrating intentional underreporting.
Money Laundering and Evasion Tactics
Feinman also engaged in money-laundering activity to disguise the origins of his proceeds.
Law enforcement discovered that he exchanged hundreds of thousands of dollars in cash received from his business for checks made out to him or his companies in structured transactions designed to hide the true source of the funds.
Between May 2018 and January 2024, for example, Feinman exchanged more than $1.5 million in cash for checks totaling that same amount, a tactic prosecutors said was meant to obscure the illegal gambling receipts.
The laundering and tax evasion conduct caused an estimated tax loss to the United States of over $1.5 million, money that should have been paid into the federal treasury.
Potential Penalties and Sentencing
Feinman is scheduled to be sentenced on May 12, 2026, and faces significant prison exposure:
- Up to 10 years in prison on the money-laundering charge
- Up to 5 years each on the illegal gambling and tax-evasion charges
A federal judge will determine his ultimate penalty after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was prosecuted by trial attorneys in the DOJ Criminal Division’s Tax Section, with assistance from the IRS Criminal Investigation’s International Tax and Financial Crimes group and Homeland Security Investigations.
Wider Enforcement Context
Federal authorities have been increasingly active against illegal gambling operations, particularly where offshore platforms are used to evade U.S. regulatory controls and tax obligations.
Past prosecutions illustrate similar patterns: unlicensed operators drawing millions in wagers, failing to report earnings and using financial schemes to disguise revenue sources.
For example, in a separate case, a Santa Monica man pleaded guilty in 2025 to running an illegal sports betting ring through a Costa Rica-based site and failing to pay taxes on more than $5 million in revenue.
Such actions not only defraud the government of tax revenue, but also deprive legalized operators and regulated markets of fair competition, prosecutors have noted. The DOJ and its partners continue to target similar operations nationwide.
Conclusion: Crackdown on Illegal Gambling and Tax Schemes
Jason Noah Feinman’s guilty plea underscores the serious legal consequences for operators who evade gaming laws and fail to comply with tax obligations on unlawful income.
With millions in unreported earnings and extensive money-laundering conduct, Feinman’s case highlights how federal law enforcement is pursuing illegal gambling enterprises and financial crime in tandem.
As illegal online gambling persists alongside expanding legal markets, authorities have emphasized that offshore betting schemes do not shield operators from U.S. jurisdiction or tax responsibility, a message that prosecutors hope will deter would-be violators.
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